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FedEx said that it may not be able to recover all the systems affected by the Petya cyberattack and that the financial hit is unknown but “it is likely that it will be material” since the company didn’t have cyber insurance.
On June 28, FedEx’s global operations of its TNT unit were disrupted by the Petya attack. TNT operates in the European Union. Petya infiltrated FedEx via a Ukranian tax software product. FedEx said no data breach or data loss has occurred based on the company’s current knowledge.
FedEx isn’t the only company struggling to recover. Other enterprises also have recovered most systems, but may not fully restore the ones hit hardest by Petya.
Ukraine calls out Russian involvement in PetyaPetya ransomware: Companies count the cost of massive cyber attackRansomware in disguise: Experts say Petya out to destroy not ransomPetya ransomware attack: What it is, and why this is happening againWannaCry: Why this ransomware just won’t dieSix quick facts to know about the Petya global ransomware attackAfter WannaCry, ransomware will get worse before it gets betterDon’t be the weak link that brings us all down: Keep your OS patched and up to date [TechRepublic]
In FedEx’s filing, the company said its TNT depots, hubs and facilities are operational with most services, but customers are seeing service and invoicing delays. FedEx has had to use manual processes for a “significant portion of TNT operations and customer service functions.” FedEx couldn’t say when TNT services will be fully restored.
As for FedEx’s recovery plan, the company said it focused on operations, finance, back-office and secondary business systems. FedEx couldn’t put a price tag on the attack fallout, but did note:
Given the recent timing and magnitude of the attack, in addition to our initial focus on restoring TNT operations and customer service functions, we are still evaluating the financial impact of the attack, but it is likely that it will be material. We do not have cyber or other insurance in place that covers this attack. Although we cannot currently quantify the amounts, we have experienced loss of revenue due to decreased volumes at TNT and incremental costs associated with the implementation of contingency plans and the remediation of affected systems.
The company said it is still committed to boosting operating income by $1.2 billion to $1.5 billion in fiscal 2020 relative to fiscal 2017.
More on cybersecurity:
Expanded state hacking powers make a stealthy return to German agendaRansomware attack: How a nuisance became a global threatRansomware attack: The clean-up continues after WannaCry chaosCongress introduces bill to stop US from stockpiling cyber-weaponsCybercrime and cyberwar: A spotter’s guide to the groups that are out to get youResearch: Companies see mobile devices as big cybersecurity threatGovernments and nation states are now officially training for cyberwarfare: An inside look
And securing the mobile enterprise:
Enterprise mobility: BYOD, EMM, and new security approachesResearch: Inconsistent IT policies create BYOD risks, wearable security lags behind smartphones and laptopsExecutive’s guide to mobile security (free ebook)The state of mobile device security: Android vs. iOSStress-reducing MDM tips for businesses managing Apple devicesMDM for Android devices: What your business needs to knowBest practices for managing the security of corporate-owned smartphones and tablets
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